A short "market-report", because some interesting things are happening.
1) Volume Who checks the volume on Coinmarketcap finds out that it is very low. Right now only about 6.400 EUR. But, who looks at the markets to see the numbers per exchange will see this:
The volume on Cobinhood is excluded because Cobinhood charges no fees. But the volume is not just higher than on other exchanges, it is 5700% of HitBTC.
Most interesting question is: Can that be real volume? I mean, one could say: Since trading is for free people simply trade much more.
Why I don't believe that: The other exchanges show that not many are interested in Savedroid. I know Shitcoins from 2014 which have a higher volume. And the orderbook shows: On the BTC pair only 25 M SVD are on the buyside. On the ETH pair: 30 M SVD. Even if all of that would be at the current price level that would only be about 35000 EUR. But most of it is much much lower (15 Million SVD below 3 SAT on the BTC pair for example).
So, where does the volume come from? My bet: It's wash trading, done by bots. Maybe it's the exchange that trades SVD they got from Savedroid to list the token back and forth or it is another entity.
What is Wash trading?
A wash trade is a form of market manipulation in which an investor simultaneously sells and buys the same financial instruments to create misleading, artificial activity in the marketplace.[1] First, an investor will place a sell order, then place a buy order to buy from himself, or vice versa. This may be done for a number of reasons:
To artificially increase trading volume, giving the impression that the instrument is more in demand than it actually is.[2]
(...) https://en.wikipedia.org/wiki/Wash_tradeIt's not unusual in Crypto. Even Bitfinex is accused to do it with Tether (Bitfinex and Tether are owned by the same ppl). But it's misleading of course and actually not legal.
2) Price Yesterday something interesting happened:
That dump sent the price nearly to zero (about 0.000028 EUR) - with only 12 Million SVD.
Two scenarios:
1) Somebody simply wanted to get out. Without thinking about how to do it smart, he sold 12 Million SVD at a huge loss because a lot of it was sold significantly below the current price while it would have been possible to sell 12 Million with a little bit more patience and not only the ETH-pair without losing so much money.
2) A wash-trading-bot went crazy...
I don't know what it really was. Scenario 1 is possible because there are enough people who bought into SVD without having any experience, or maybe somebody was mad as hell and just wanted to crash the price or whatever. But.... stupid of course. Scenario 2: Bots don't always work as intended and that the volume is no real trading is a pretty safe guess in my opinion.
3) Cobinhood has influence on the price, not the best one...
But, what I actually want to show is: Whatever happens on Cobinhood with SVD doesn't help the price. It's the opposite. A second look on the first screenshot above shows: Prices on the Cobinhood-pairs are
below other exchanges. With other words: The high(er) volume, in comparison to other exchanges SVD is listed on, would indicate high interest. If that would be real the price should reflect that as well. The liquidity is low, so the price actually should be above the prices on other exchanges. Why is that not the case?
A potential scenario could be this: Wash-trading, done by bots, is happening. The higher volume attracts real Investors but more of those who want out. So they choose to sell their SVD on Cobinhood and whenever somebody sells into the buys, the price goes down. Bots adjust and place their orders at lower prices as well. With other words: They would help to suppress the price even more. Other exchanges follow the leading exchange by volume and price circles down.
If I'm right, everybody who would be interested in higher prices can say a big "thank you" to whomever does this funny moves on Cobinhood.
The Chart looks this way -
new All-Time-Low:
